Question

А а Interest on Drawings: 45. M and N are partners sharing profits in the ratio of 3:2. M draws New Rs. 300 regularly at the end of every month during the year 1994 N draws Rs. 1,000 on 1.4.94, Rs. 600 on 30.6.94/Rs. 800'on 1:10.94 and Rs. 400 on 30.11.94: Calculate interest on their Drawings at of par 6% p.a.​

Answer 1

Explanation:

Interest in the three situations will be:

(i) Total Drawings in the year =Rs.12,000, Rate of Interest =15% p.a. 

Interest on Drawings =100Rs.12,000×15×12621=Rs.975. 

Average Period =2Months left after first Drawing + Months left after lait Drawing=

*Average Period =212 Months+1 Months=621 Months. 

(ii) Total Drawings in the year =12,000, Rate of Interest =15% p.a.

* Interest on Drawings =10012,000×15×126∗=Rs.900.

*Average Period =21121Months+21Month=6 Months. 

(iii) Total Drawing in the year =Rs.12,000, Rate of Interest =15% p.a

Interest on Drawing =100Rs.12,000×15=12521∗=Rs.825.

*Average Preriod =